New Zealand Gazette – 1997 – No. 106

Page 2472

✨ Financial Statements



Wairoa Power Limited - Other Businesses

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 1997

STATEMENT OF ACCOUNTING POLICIES (continued)

e)
Income tax

The income tax expense charged to the statement of financial performance includes both the current year's provision and the income tax effects of timing differences calculated using the liability method.

Tax effect accounting has been applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account arising from timing differences or income tax benefits from income tax losses, is only recognised if there is virtual certainty of realisation.

f)
Inventories

Inventories are stated at the lower of cost, determined on weighted average cost and net realisable value.

Changes in Accounting Policies

There have been no changes in accounting policies. All policies have been applied on bases consistent with those used in previous years.

Wairoa Power Limited - Other Businesses

NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 1997 continued

2 NET PROFIT BEFORE TAXATION

1997 1996
After Charging:
Audit fees and expenses 10,125 6,304
Depreciation 114,309 98,070
Directors Fees 46,469 33,750
Interest - Local Authority loans 106,792 111,778
Interest - other ... ...
Gain on disposal of fixed assets 3,178 ...
After crediting
Interest received 177,917 176,558

3 TAXATION

1997 1996
Profit before taxation 253,388 44,509
Prima facie taxation 83,618 14,688
Plus/(Less) taxation effect of permanent differences
Non-deductible legal expenses ... ...
Other permanent differences 3,494 1,508
Taxation expense (benefit) 87,112 -16,196

The taxation charge is represented by:

1997 1996
Current taxation 81,637 10,555
Deferred taxation 5,475 -5,641
87,112 -16,196

There are no income tax losses or unrecognised timing differences carried forward.

DEFERRED TAX ASSET

1997 1996
Balance as at 31 March 1996 24,608
Depreciation Movement for current year (5,475) (56,41)
Balance as at 31 March 1997 19,133 24,608

THE NEW ZEALAND GAZETTE
No. 106



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✨ LLM interpretation of page content

🏭 Statement of Accounting Policies for Wairoa Power Limited (continued from previous page)

🏭 Trade, Customs & Industry
Accounting Policies, Reporting Entity, Principal Activities, Measurement Base, Methodology of Separation of Business, Fixed Assets, Depreciation, Receivables, Income Tax, Inventories

🏭 Net Profit Before Taxation for Wairoa Power Limited

🏭 Trade, Customs & Industry
Net Profit, Taxation, Audit Fees, Depreciation, Directors Fees, Interest, Gain on Disposal of Fixed Assets, Interest Received

🏭 Taxation for Wairoa Power Limited

🏭 Trade, Customs & Industry
Taxation, Profit Before Taxation, Prima Facie Taxation, Permanent Differences, Taxation Expense, Current Taxation, Deferred Taxation, Income Tax Losses, Unrecognised Timing Differences, Deferred Tax Asset